Introduction to Industry 4.0
Backdrop Let’s admit it; the last three centuries have witnessed dramatic changes in global human living standards and development index, a lot more than the previous 1000 years of human history. The fact that technology and rapid industrialization could bring in such a massive transformation in the way humans carry out work or interact is astounding. We owe this transformation to the age of the industrial revolution.The Industrial revolution altered world trade & economic scenarios forever. Although we have read about the 18th-century industrial revolution in history class; how steam and water-powered engines and factories flipped the European and American economy & society for good; we should bear in mind that that was not the zenith of the revolution. In fact, according to Klaus Schwab in his book The Fourth Industrial Revolution, there are four distinct eras of the industrial revolution in history, including the one undergoing currently. This blog emphasizes the fourth one, which is popularly known as Industry 4.0. Before diving into Industry 4.0, we need to take a step back and revisit the previous eras of industrial changes. The First Industrial Revolution Everything started right here. The first industrial revolution began around the early 1700s when it was found that heating water produces steam which moves things with enough pressure. Then, around the beginning of 1760, the development of steam engines changed the face of locomotion. This newfound technology put a stop to animal and human labor-powered tools and machines. The Second Industrial Revolution This era appeared at the start of the 20th century, introducing assembly lines and steel to mass-produce products with more tenacity and durability. This era also saw the emergence of gas, oil, electricity as significant power sources to drive factories, modes of transport, and overall productivity. Add advanced communications such as the telephone and telegraph; the 2nd industrial revolution pretty much set the tone for the 21st-century world. The Third Industrial Revolution This is the post-WW II era, which begins in the 1950s. This age saw increased use of more digitally inclined technologies like computers, electronic devices, the internet, semiconductors. In addition, the digitization of factories helped automate the manufacturing process to a great extent, thereby relieving manual and analog dependence on manufacturers. The Fourth Industrial Revolution Experts suggest that this falls under the current era, which is the 21st century, characterized by increased digital technology, automation, and cyber-physical systems. Usage of automation, data collection, data analysis, physical-digital connectivity has made production far more efficient, smoother, and better than the previous systems. Thus, this era of the fourth industrial revolution is also known as Industry 4.0. What is Industry 4.0 To define Industry 4.0, we need to understand the concept that sums up this era. Nowadays, more and more domains are being interconnected via digital means, making it easier to relay & process system information. Moreover, since products and means of production are intertwined, they can communicate, enabling efficient output, smoother optimization, and value creation. Hence, Industry 4.0 can be defined as “a new age intelligent system setup between machines and processes which relies on information, data, and analysis to drive production and value.” Industry 4.0 had revolutionized the meaning of interconnectivity in epic proportions. It presents a more comprehensive, connected, and holistic approach to manufacturing and productivity. It encourages physical and digital medium overlap, allowing for better collaboration across various departments, partners, vendors, and domains. Since it has enabled automation to permeate every aspect of manufacturing, it provides for data generation and evaluation. This helps business owners to have a better understanding of their process. As a result, they can have better control on production. It allows them to leverage data to boost output and drive growth. Computers were first introduced in the third industrial revolution. Back then, computers were a new kind of technology for the already established factories. Now thanks to the new wave of the industrial revolution, computers encompass every field of industry. Thanks to the effective combination of computers with cyber-physical systems, Internet of Things (IoT), and Internet of Systems, intelligent factories have become a reality today. The development of intelligent factories means a lot of new benefits for the manufacturing industry. As machines keep getting smart, they can access more data to evaluate and give back customized solutions and help us make better decisions. Such advancement also reduced human involvement drastically, thereby reducing the chances of human errors and miscalculations. Industry 4.0 Principles Industry 4.0 strives to work on the principles below, and every business owner thinking of incorporating Industry 4.0 must consider these points. Interoperability: It is the ability to communicate across all platforms in the factory premises, from men to machines.Decentralization: It is the ability to carry out tasks via autonomous sub-systems with AI and cyber-physical systems.Real-time Analysis: It can collect and evaluate a large quantity of information via automated AI systems and monitor and optimize processes.Virtualization: It is the ability to create a virtual, digital copy of existing processes to facilitate simulation & testing.Scalability: It is the ability to be adaptive enough to customize itself based on the needs of the consumer market and scale technical prowess as per the technical necessities. Industry 4.0 technologies Since Industry 4.0 pertains to new-age technologies coupled with factories to facilitate high production and smart operation, here are the key players in this landscape: Internet of Things (IoT) IoT is probably the most important breed of technology to impact the industrial domain. IoT involves specific electronic devices connecting machines with other web-enabled devices to enable data collection in large quantities. This extensive collection of data can be analyzed, exchanged, and used for end-to-end decision-making. Cloud Computing Cloud computing is the keystone of Industry 4.0 architecture. Smart factories demand great connectivity and integration of various departments such as engineering, logistics, supply chain, sales & distribution, service. This is where cloud computing comes into play. A significant X factor of cloud computing is its ability to store a large quantity of information with minimum costs. This helps small and medium-sized companies in keeping, managing their data,
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Benefits of Industry 4.0
In the previous article, we read about what Industry 4.0 is, its basic principles, and the prime technologies that surround it. Industry 4.0 is another name for the fourth industrial revolution to run a recap, which is a continuation of the three earlier revolutions. Industry 4.0 is an umbrella tag that refers to immense changes sweeping across the industrial value chain system. These changes are driven by the rise of new-age technologies that offer a smoother, efficient way to organize, optimize, and manage all processes within a manufacturing factory ecosystem. It incorporates new production & communication tools to connect every aspect into a single well-oiled digital system. In addition, it adopts unique methods to streamline operations across various domains within a production cycle. As industry 4.0 brings in uncapped changes in every sector, it also plays a significant role in the ROI factor in businesses. Since it aims to merge physical and digital systems into unified cyber-physical machinery, it has dropped considerable alterations in the way productions roll. We have already seen how Industry 4.0 aims to mold automation, big data, AI with machines. Here in the blog, we will go through all the points highlighting the benefits of incorporating Industry 4.0 principles. Benefits of Industry 4.0 Industry 4.0 in business processes and production lines may vary from one entity to another. It depends on which technologies are prioritized, utilized more, and how it affects the existing workforce & working processes. Without going into complications, here are the commonly observed plus points that a business benefits from Industry 4.0. Higher Production & improved Productivity Since Industry 4.0 results in smart factories, it assures higher, faster production with improved quality of productivity. As a result, one can allocate resources more effectively. Additionally, the production line faces less downtime because of advanced automated monitoring and error-free decision-making capability. Ultimately, it improves the general Overall Equipment Effectiveness. One in six businesses also expects a 20% sales rise owing to Industry 4.0 application. Optimization A great side of Industry 4.0 is that it permits optimization. Since it involves automation, there is scope for self-optimization, leading to zero downtime of factory machines. Optimization drives better maintenance of any equipment by having the needed resources at the right location and time. The ability to harness production capacity consistently is a better option than extensive downtime or an overhaul. Customization Industry 4.0 requires every domain to stay interlinked, which is means intelligent factories and the Industrial Internet of Things (IIoT) must be interconnected and constantly in a loop. It provides business owners and manufacturers with the current market trends, eliminating any middle man to bridge these two entities. Such end-to-end constant connections allow for smooth scaling of production up or down depending upon market demand. Higher Efficiency Efficiency is a parameter that covers every aspect of a production line. As mentioned before, higher efficiency means less downtime, faster output, better finish, faster changeovers, automatic tracing, and automated report generation. In addition, higher efficiency guarantees better turnover and customizing opportunities depending on the consumer market. Increased collaboration and knowledge share We know how traditional manufacturing factories operate. They work in close-knit units where one unit is unlikely to come in touch with the other, thus minimizing knowledge share. It isn’t the case with Industry 4.0 laden smart factories. The cyber-physical system ensures every production line, from the factory floor to business process to sales & distribution, is well connected and updated should there be any new revelation. It surpasses location, time zone, platform constraints. Picture this; if one smart sensor pulls in unique insight and wants to update the system about it, the automated process will make sure it does without any human intervention. Agility and Flexibility A significant benefit of Industry 4.0 is that it enables easy scaling of production based on requirements. Thus, one can introduce new products based on market demand, increase or decrease output and make new opportunities. Ease of Compliance Since industry compliance is a great necessity for any business, particularly consumable items such as pharmaceuticals and food products, automating the complaint process goes a long way than a manual process.Industry 4.0 makes it possible to automate compliance actions, thereby easing the load off human employees. Quality Customer Service Industry 4.0 also presents ample chances to improve the customer experience. For example, an automated supply chain will highlight the products and their availability in the supply chain without having the human workforce keep a tab in such a painstaking task.Automated report generation helps giving sales reports, market analysis, and customer feedback for the business owner to reassess his resources and business strategies. Automated tracking and tracing help keep an eye on the journey chain of any product. The best part is IoT. Business owners can create AI chatbots to address customer grievances & queries without any human involvement. All these automated operations generate data and information which can be analyzed, manipulated further for production & process enhancement. Cost Reduction Setting up a smart factory laden with Industry 4.0 tech is not child’s play. “Rome was not built in a day,” and so is a smart factory. Moreover, it requires a considerable investment which is the upfront costs. That being said, the returns of such investment are wholesome if done correctly. Moreover, since implementing Industry 4.0 involves laying down system integration, automation, big data management, intelligent surveillance, and AI, all these technologies play a huge role later on in terms of cost savings. Reason being: Any business owner will agree on the perks of Industry 4.0 in terms of the cost factor. Increased Innovation Industry 4.0 provides excellent scope for innovation. Whether it is manufacturing production line, supply distribution chain, or business domains, the 4.0 techs present a good amount of knowledge that can be harnessed to improve product quality or bring up a new product itself. Higher revenues and profits A business owner’s prime goal is to reap maximum profits with minimum expenditure involved. Industry 4.0 provides the chance to reap those
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